Pakistan’s total cement production capacity is projected by the industry to grow to 33.802Mt by the end of the current fiscal year and to 42Mt by 2009-10. Total production capacity of the cement industry grew by 17 per cent to 21.641Mt in 2005-06 from 17.91Mt the previous year.
The growth during the current financial year is projected to be 36 per cent over the last fiscal ending on June 30, 2006.
"The current dynamics and trends of the market require such commitment and the all cement manufacturers have responded with the plans to enhance their production capacities," Brig (retd) Asmat Ullah Khan Niazi, acting chairman of the All Pakistan Cement Manufacturing Association (APCMA), said in a news release on Friday.
"The demand of cement has surged enormously due to an unprecedented increase in the construction activity. The rise in the manufacturing cost of cement, that is, the increase in fuel prices, taxes that in some cases are unique to the cement industry, only resulted in the rise in cement prices. Coupled with demand upsurge, retailers’ manipulation of the market further increased the consumer prices. In order to counter these problems, cement manufacturers had decided to enhance their production capacities so that these problems could be managed," he said.